I suppose the distribution is extreme on both sides. Either you accumulated assets from early on and you're golden, or you're still struggling with rent and no pension in sight.
Yeah, you've saved for retirement at ~65ish, but you have 2 kids in college with one on the way up, plus a mortgage, plus just regular life stuff. That's not an unreasonable scenario at all.
Like, do you live in a first world nation? Honestly, the paradigm changes a lot in the 3rd world and your confusion would be more appropriate in Chad or something.
(In Chad, average age of first birth is 18, so you'd reasonably be a grand parent by 50, plus cost of living is very low)
Households age 55-64 with Households age 55-64
no retirement savings with retirement savings
Percent of house- 41% 59%
holds age 55-64
Median net worth $21,000 $337,000
Median non-retirement $1,000 $25,000
financial resources
Median income $26,000 $86,000
Home ownership rates 56% 87%
Percent who own a home 22% 27%
that is paid off
Percent with a 32% 45%
defined benefit plan
Then an additional 50% who have a home but still a mortgage to pay. The statistics don't say when mortgages will end, so we can't do any meaningful analysis on the majority.
There are more people on the low side, not WAY MORE contrary to your statement.
Too bad we don't know when they will pay off. A friend of mine just bought a house for $250k from someone who bought it in 1998 for $70k - 6 months before selling they refinanced for $225k. (this is all public information if you go to the right courthouse - he knows this because it is in the title).
Which is to say there are some people who don't have their house paid off yet, but will have it paid off before they retire, and then live rent free (but with other bills and taxes). There are other people who will not have anything paid off.
